Memphis, Tennessee-based farm equipment company Krone North America Inc. has called off plans for a $12.5 million relocation project that would have moved its corporate headquarters to Shelbyville.
The company, which is owned by German-based Bernard Krone Holding GmbH & Co., announced in March 2016 that it planned to build a 200,000-square-foot operations hub on 40 acres of undeveloped land at Interstate 74 and State Road 44.
Krone planned to create 101 jobs at the facility by the end of 2021. Construction had been slated to begin in the spring but never began.
Shelby County Development Corp. Executive Director Brian Asher said Krone decided to call off plans for business reasons, not because it was unhappy with Shelbyville. He said it was possible Krone might revisit the decision in the future.
Asher said Krone had a down year as far as sales and was concerned about possible changes in national policy regarding import taxes, farm subsidies and crop insurance.
Krone had planned to use the property for its primary distribution and training hub in North America, as well for showroom space. The center would have contained 20,000 square feet for Krone’s corporate headquarters staff.
The Indiana Economic Development Corp. offered up to $1.8 million in conditional tax credits to Krone based on the job-creation plans. It also planned to provide the Shelbyville with up to $500,000 in infrastructure assistance.
Krone acquired the development property from First Presbyterian Church for $1.4 million, but the county and Shelbyville kicked in $500,000 each toward the purchase in land-acquisition assistance. The SCDC still must decide if it wants to reaquire the land from Krone for $400,000.
Krone was founded in Spelle, Germany, in 1906 and established Krone North America in Memphis in 1973. The company employs more than 4,500 associates globally, including 160 in the United States.
The company’s product line includes high-capacity mower conditioners, disc mowers, rotary tedders and rakes, round balers, and large square balers.
The decision comes less than a week after Japan-based Kimura Foundry America announced plans to open an $8 million manufacturing facility in Shelbyville by the end of next year.